"If Living in Monthly Rent, Marriage Likelihood Decreases by 65.1%, Childbirth Possibility by 55.7%"

Korea Economic Research Institute 'Impact of Housing Types on Marriage and Childbirth'
Last Year's Early Marriage Rate Hits Lowest Since 1970

[Asia Economy Reporter Dongwoo Lee] A study has found that living in monthly rent housing reduces the likelihood of marriage and childbirth by more than 50% compared to homeowners. It argues that policy improvements are needed to ease real estate regulations and increase housing supply to reduce housing burdens.

The Korea Economic Research Institute announced on the 21st that, according to its analysis of "The Impact of Housing Type on Marriage and Childbirth," the probability of marriage decreases by 23.4% for those living in jeonse (long-term lease) housing and by 65.1% for those living in monthly rent housing compared to homeowners.

The type of residence was also found to affect the birth of the first child in married childless households. The report explained that the likelihood of having a first child decreases by 28.9% for those living in jeonse housing and by 55.7% for those living in monthly rent housing compared to homeowners.

However, the report noted that while housing type has a significant impact on the birth of the first child, it does not affect the birth of the second child. From the second child onward, the likelihood of childbirth significantly increases with the household's earned income, indicating that income has a greater influence than housing type.

Meanwhile, South Korea's total fertility rate last year recorded 0.9, setting a new annual low. The report explained that the total fertility rate in 2018, when international comparisons are possible, was 1.0, marking the lowest level among OECD countries.

In the case of Japan, a super-aged country, the total fertility rate was 1.4, higher than South Korea's, while the United States recorded 1.7, and the OECD average was 1.6, all higher than South Korea. The Korea Economic Research Institute predicted that if the current trend continues, natural population decline (annual) in South Korea could become a reality this year. The crude marriage rate, which indicates the number of marriages per 1,000 people, also recorded a historic low of 4.7 last year since statistics began in 1970.

The Korea Economic Research Institute emphasized the need to carefully approach real estate issues in terms of solving low birthrate problems and mitigating population decline, as housing type affects marriage and birth rates.

However, the Korea Economic Research Institute expressed concern that since the implementation of a series of recent real estate regulation policies and the three lease laws, the apartment jeonse supply-demand index in Seoul has hovered around 120, indicating a severe jeonse shortage, and jeonse prices continue to rise. In particular, in Seoul apartments, the proportion of monthly rent listings has surpassed that of jeonse listings, requiring caution.

Researcher Jinseong Yoo of the Korea Economic Research Institute said, "Although there is talk that monthly rent is becoming the norm, a sudden shift to monthly rent increases the housing burden on the homeless and could negatively affect the future working population," adding, "It is necessary to improve policies by easing real estate regulations and increasing housing supply to alleviate housing burdens."

This content was produced with the assistance of AI translation services.